Corus Now Belongs to Its Lenders

Corus closed its debt-for-equity deal on 8 Oct. Lenders now own 99% of Global's parent, and the CRTC waived the usual benefits payment to get it done.

By Jeff Cameron October 10, 2026 4 min read

Illustration: The Remote

The company behind Global, Global News, STACKTV and 25 specialty channels changed hands this week without anyone buying it. Corus Entertainment completed its recapitalization on 8 Oct, according to the company, swapping roughly $500 million of debt for almost all of its equity. Its lenders now own 99% of a new parent company, and existing shareholders keep about 1%.

For viewers, the channels are still on. The question is what a broadcaster owned by its creditors does next.

How the deal works

Corus first announced the plan on 3 Nov 2025. Holders of $500 million of its senior notes exchanged them for shares in a new parent, now named Corus Entertainment Holdings Inc. Another $250 million of notes became new second-lien secured notes with a six-year term. Corus said at the time the deal would cut third-party debt and other liabilities by more than $500 million and reduce annual cash interest by up to $40 million.

Its recapitalization page says the roughly $301 million secured term loan was settled with cash and $300 million of new first-lien notes, and its revolving credit line rose to $155 million on 1 Oct. Old Class A and Class B shares were exchanged one for one and then consolidated 500 to one. The old shares are expected to come off the Toronto Stock Exchange after trading on 9 Oct, with the new shares due to start trading on 13 Oct under the symbol CORS.

Why the CRTC waved it through

A change of control needs the regulator’s approval, and on 17 Sep the CRTC granted it in Broadcasting Decision 2026-247. The decision is a frank read of Corus’s position. It describes “significant financial challenges” and “a real risk that it will become a failing operator.” It cites $1.1 billion in cumulative debt, discretionary channel revenue falling an average of 10.3% a year from 2023 to 2025, more than three times the industry average, the loss of Warner Bros. Discovery licensing rights, and the closure of Nickelodeon Canada, ABC Spark and three radio stations.

Normally a buyer of broadcast licences pays “tangible benefits” into Canadian content and news funds. The CRTC waived that here, reasoning that this was a debt-for-equity swap rather than a purchase and that “the public interest would not be served by adding to Corus’s financial burden.” Corus had estimated the value of the deal at about $328 million in the alternative while arguing it should be treated as zero, according to the CRTC’s May notice. The Writers Guild of Canada was among the interveners opposing the full exemption.

No shareholder will hold a majority. Canso Investment Counsel is expected to be the largest, with about 44% of voting interests, but the CRTC found effective control rests with the new board. It imposed no new news or local programming conditions, calling them “premature,” while saying it expects Corus to “prioritize the provision of a variety of news to the greatest extent possible.”

The business it inherits

The most recent quarterly numbers show why the deal was needed. In the three months to 31 May, Corus reported revenue of $249.4 million, down 16%. Television advertising fell 20% to $120.3 million, and subscriber revenue fell 13% to $96.5 million. Segment profit dropped 53% to $29.1 million, and the net loss attributable to shareholders was $36.5 million. Net debt stood at 8.20 times segment profit. Revenue from newer platforms, including streaming, was 15% of TV advertising and subscriber revenue, up from 12%.

What it means for you

Nothing changes on your channel lineup today: Global, the specialty channels and STACKTV continue.
The CRTC set no new news obligations, so decisions about Global News coverage now rest with a creditor-owned board.
Corus’s fourth-quarter results, covering the period to 31 August, will be its first report since the deal closed. Watch advertising and any further channel closures.

Sources

Finished? Keep it handy.

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